The process of economic globalization and the gradual removal of economic barriers between countries have favored the formation or expansion of numerous financial and monetary unions with increasingly large transactions. Therefore, many countries have prioritized the formation of highly competitive financial systems, which are also an opportunity to attract foreign investment capital as well as advanced technologies. This is a decisive factor in ensuring macro-economic stability as well as economic security. Therefore, the establishment of international financial corporations (IFCs) has become the main feature of the strategy for the development of financial markets in many countries.
In order for Vietnam to achieve specific goals by 2025 and become a developing country with modern industries with a per capita income of about 5,000 USD, with a high average income by 2030 and 2045, the training of ‘IFC Vietnam in Ho Chi Minh City is absolutely necessary. . Ho Chi Minh City occupies an extremely important position in the country, as it makes great contributions to the economy, and also has the unique ability to accept new things and innovate itself, through mechanisms and economic policies that have proven themselves in their development process. in the past. In its past history, Ho Chi Minh City was once the center of Southeast Asia and known as the “Pearl of the East” during its colonial rule. The City also has an unequaled geo-economic position with a higher level of development than other countries.
Even today, Ho Chi Minh City is the country’s main national financial center, with numerous banks and credit financial institutions, and a strong stock exchange carrying out domestic and international monetary transactions. Financial, banking and insurance activities account for a large share with an absolute value of around 10% of Ho Chi Minh City’s GDPR and more than a third of that of the whole country.
An IFC is an information analysis and management organization with financial potential. The constituent parts of the IFC are the stock market, international, national and branch banks, multinational corporations, investment and pension funds and other key financial institutions. It has companies providing legal, auditing, consulting, advertising and accounting services, such as McKinsey, Boston Consulting Group, CB Richard Ellis, Ernst & Young and Deloitte Touche Tohmatsu, information technology companies and the media.
IFC will also attract many experts to analyze the global financial market situation and outlook, monitor countries’ macroeconomic indicators, conduct research, and propose mechanisms and policies to make financial markets work efficiently. In addition, IFC analyzes, conducts multidisciplinary research, calculates and publishes international ratings and indices, such as the World Federation of Exchanges, Moody’s, Standard and Poor’s. Many of these reputable companies are already present in Vietnam.
However, setting up an IFC Vietnam in Ho Chi Minh City will not be easy and it may take many years to build. Besides the issue of infrastructure, including information and telecommunications infrastructure, creating a foundation for national digital transformation with high quality human resources, legal institutions, mechanisms and policies will be important to make Ho Chi Minh City an IFC from Vietnam. It is good that these are also the strategic breakthroughs that our Party identified in the Resolution of the 13th National Party Congress on February 1, 2021.
It calls for synchronous development of the institution, creating a conducive, healthy and equitable business investment environment for all economic sectors, and promoting innovation, mobilizing, managing and effectively utilizing all resources for development, especially finance. The most important of all features will be the development of software, i.e. mechanisms and policies, not hardware, such as infrastructure, which can be developed immediately if the money is available. Only mechanisms and policies make the difference, but these come from awareness.
In the current legal framework, this is certainly impossible, because the relationship between companies and public bodies is mainly through a mutually beneficial mechanism, and is not in itself. If even domestic companies are struggling, what will international companies and investors around the world think of such a system. Finance is still a sensitive area that directly affects macro stability, and is still strictly regulated by specialized laws. Ho Chi Minh City has a particularly important role to play in our economy, our politics, our culture and our society that no other city in our country can play.
I completely agree with Mr. Phan Van Mai, Chairman of the Ho Chi Minh City People’s Committee when he says that Ho Chi Minh City needs a separate law to regulate the position and role of the city as well as the mechanisms, policies and responsibilities for the construction, development and management of the city, especially when the city implements the current resolution of the National Assembly No. 54/2017/QH14 on the piloting specific mechanisms and policies for the development of Ho Chi Minh City. As a rule, regulations that have been tested with good results can be translated into law for stable and long-term application. This year, Ho Chi Minh City will summarize five years of implementation of Resolution No. 54/2017/QH14 and report to the National Assembly at the year-end meeting.
